Dalmia Bharat Sugar details demerger cost apportionment for shareholders

Dalmia Bharat Sugar and Industries Limited (DBSIL) has issued a communication to its shareholders regarding the apportionment of the cost of acquisition for equity shares of both DBSIL and Dalmia Bharat Refractories Limited (DBRL) following a demerger. The National Company Law Tribunal sanctioned the Scheme of Arrangement on September 12, 2025, with an effective date of October 9, 2025, and an appointed date of July 1, 2023. The record date for determining eligible shareholders for DBRL shares is set for Friday, October 31, 2025.

Under the scheme, DBRL will issue one fully paid-up equity share of face value INR 10 for every 48.18 fully paid-up equity shares of face value INR 2 held in DBSIL. For cost apportionment, 94.55% of the original acquisition cost will be attributed to DBSIL shares, while 5.45% will be allocated to DBRL shares. This is based on the net book value of transferred assets relative to DBSIL's net worth as of June 30, 2023.

As an example, a shareholder who purchased 1,000 DBSIL shares at INR 300 each, totaling INR 300,000, will have INR 283,650 allocated to their remaining DBSIL shares and INR 16,350 to the 20.76 DBRL shares received. This guidance is provided for calculating future taxable capital gains.